Published on 16.02.2024

Nasdaq Index

When it comes to investing in the technological sector, the name Nasdaq quickly comes to mind. This American stock exchange is considered as the benchmark for the global technology sector. Keep reading to learn more about this index.

Below are some of the stocks listed on the Nasdaq.

Symbol Name
GOOGL

Alphabet

AMZN

Amazon

AAPL

Apple

ASML

ASML

BIDU

Baidu

META

Facebook

FCEL

FuelCell Energy

INTC

Intel

MRNA

Moderna

NFLX

Netflix

NVDA

NVIDIA

TSLA

Tesla

BLDP

Ballard Power

NKLA

Nikola

PLUG

Plug Power

QCOM

Qualcomm

What is the Nasdaq?

Nasdaq was founded in 1971 and is considered the world's first electronic stock exchange. This meant that trading took place through screens rather than physically on a trading floor. Many iconic technology companies had their initial public offerings (IPOs) on Nasdaq. For example, Apple went public on the Nasdaq in 1980 and Microsoft in 1986. Amazon and Alphabet are also listed on Nasdaq.

Over three thousand companies are listed on the Nasdaq

Even today, the Nasdaq remains the preferred exchange for many young companies to list their shares. Currently, there are over three thousand companies listed on Nasdaq, making it the second-largest stock exchange in the world by market capitalisation after the New York Stock Exchange (NYSE).

The Nasdaq indices defined

Nasdaq-100 index and Nasdaq Composite index

The Nasdaq has several indices. The Nasdaq Composite includes all the stocks of companies listed on the exchange. When commentators in news media refer to "the Nasdaq," they usually mean the Nasdaq Composite. Additionally, there is the Nasdaq-100, which includes only the hundred largest non-financial company stocks. Plus, there are sub-indices for sectors such as biotechnology and stocks.

Nasdaq is also a price index

A price index means that dividend payments by companies are not included in the index calculation. To calculate the total return of Nasdaq, there is also a total return index that reinvests dividends.

Calculation of the Nasdaq index

Each stock in the index has a weighting factor, which is based on the company's market capitalisation. The larger the market capitalisation, the greater the company's influence on the index. The weighting factor and the price of all stocks is multiplied together calculated. The resulting number is divided by the index divisor to ensure that the Nasdaq index value is not excessively large.

Nasdaq index value:  price x weighting factorIndex Divisor

Dot-com bubble

In the late 1990s, a wave of new internet companies went public in the United States. However, many of these companies were not yet profitable or generating revenue. Stock prices skyrocketed rapidly, and the Nasdaq broke record after record. When the dot-com bubble finally burst in the spring of 2000, the index plummeted nearly 80%. It took until 2015 for the Nasdaq to reach a new record high.

Women in Wallstreet

Adena Friedman (Chief Operating Officer) was promoted to the role of CEO in November 2016. She became one of the first women to run a major exchange in the United States. Her aims within her CEO position were to drive efficiency, further develop products, plus manage growth and expansion.

Buying Nasdaq stocks

There are several ways to invest in Nasdaq. You can purchase individual stocks listed on Nasdaq, such as Apple, Microsoft, Amazon and Google-parent Alphabet. A few other well-known companies listed on Nasdaq are electric car maker Tesla, chip producer NVIDIA and payments company PayPal.

If you want to invest in the entire Nasdaq or Nasdaq-100 at once, you can do so through options, futures or ETFs (exchange-traded funds). Most major ETF providers offer a fund that tracks the Nasdaq-100. Examples include iShares Nasdaq-100 UCITS ETF and Lyxor Nasdaq-100 UCITS ETF.

The information in this article is not written for advisory purposes, nor does it intend to recommend any investments. Please be aware that facts may have changed since the article was originally written. Investing involves risks (e.g price volatility, currency or liquidity risk). You can lose your invested funds. Consider your knowledge and experience when making investment decisions. Past performance is not a reliable indicator of future results. Markets are volatile and can fluctuate significantly due to economic, political, regulatory, or other developments.

Sources: Nasdaq Inc. Business News Daily, The Wall Street Journal, Forbes, The Motley Fool

Below are some of the stocks listed on the Nasdaq.

Symbol Name
GOOGL

Alphabet

AMZN

Amazon

AAPL

Apple

ASML

ASML

BIDU

Baidu

META

Facebook

FCEL

FuelCell Energy

INTC

Intel

MRNA

Moderna

NFLX

Netflix

NVDA

NVIDIA

TSLA

Tesla

BLDP

Ballard Power

NKLA

Nikola

PLUG

Plug Power

QCOM

Qualcomm

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Note:
Investing involves risks. You can lose (a part of) your invested funds. We advise you to only invest in financial products which match your knowledge and experience. This is not investment advice.

Investing involves risks.

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